Research carried out by a leading landlord mortgage provider has found that 30% of landlords claim they will stop using a letting agent if their costs go up. Thanks to recent legislative changes, letting agents will no longer be able to charge tenants fees when they rent a property via an agent. Many believe this will end up costing landlords more, as letting agents recoup their losses by charging landlords extra.
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Landlords Think Twice
73% of UK landlords currently use a letting agent to manage their properties, but 12% told researchers they would think twice about the arrangement if their landlord fees were increased. Of the 27% of landlords who don’t use a letting agent. 80% don’t charge tenants any fees when they rent a property, even though they must pay for credit checks, contact references and deal with paperwork.
“An increase in landlord costs as a result of a ban on tenant fees would be the latest in a succession of challenges and it’s unsurprising to learn that a substantial number of landlords might consider altering their approach to letting out their properties in that circumstance,” says Paragon Mortgages.
Time-Poor Landlords Need a Letting Agent
However, many landlords have no choice but to use a letting agent, even if their fees do go up. Managing even one rental property can be time-consuming and not all landlords are happy to be contacted out of hours. Letting agents charge fees, but some landlords feel this is money well spent.
Are you one of them?
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